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MADISON, Wis. — The Wisconsin Assembly early Friday passed a bill that would strip most public workers of their collective bargaining rights — the first significant action on the new Republican governor's plan.

Gov. Scott Walker's proposal contains a number of provisions he says are designed to fill the state's $137 million deficit and lay the groundwork for fixing a projected $3.6 billion shortfall in the upcoming 2011-13 budget.

The flashpoint is language that would strip almost all public sector workers of their right to collectively bargain benefits and work conditions.

Unions have said they would be willing to accept a provision that would increase workers' contributions to their pensions and health care, provided they could still bargain collectively. But Walker has refused to compromise.

Tens of thousands of people have jammed the state Capitol since last week to protest, pounding on drums and chanting so loudly that police who are providing security have resorted to ear plugs.

Hundreds have taken to sleeping in the building overnight, dragging in air mattresses and blankets.

While Senate Democrats fled to prevent a vote, Assembly Democrats had been filibustering.

After more than 60 hours in which Democrats threw out dozens of amendments and delivered rambling speeches, Republicans halted debate early Friday.

In a matter of seconds, they had approved the bill by a vote of 51 to 17. Only a few Democrats realized what was going on and managed to vote before the roll was closed.

'Terrible day'
The Democrats rose from their seats and rushed at the Republicans shouting, "Shame!" as the Republicans exited the chamber.

Republicans took a private elevator to an exit sealed off from the protesters.

What's at stake in Wisconsin

What bill would do
1) Eliminate collective bargaining rights for most public workers. So while unions still could represent those workers, they would not be able to seek pay increases above those pegged to the Consumer Price Index unless approved by a public referendum.

2) Unions also could not force employees to pay dues and would have to hold annual votes to stay organized.

3) Local police, firefighters and state troopers would retain their collective bargaining rights.

4) Public workers would have to pay half the costs of their pensions and at least 12.6 percent of their health care coverage. That represents an average of 8 percent increase in state employees' share of pension and health care costs.

In exchange, public employees were promised no furloughs or layoffs. Gov. Scott Walker has threatened to lay off up to 6,000 state workers if the measure does not pass.

Estimated savings
$30 million by July 1 and $300 million over the next two years to address a Republican-projected $3.6 billion budget shortfall.

Background
The proposal marks a dramatic shift for Wisconsin, which in 1959 was the first to pass a comprehensive collective bargaining law for public employees and was the birthplace of the national union representing all non-federal public employees.

When voters last year elected Gov. Walker, an outspoken conservative, along with GOP majorities in both legislative chambers, it set the stage for a dramatic reversal of the state's labor history.

National significance
New Republican governors and legislatures in other states have proposed cutting back on public employee costs to reduce budget shortfalls, but Wisconsin's move appears to be the earliest and most extensive.

Source: Associated Press and Reuters

"I'm incensed. I'm shocked," said Rep. John Richards, D-Milwaukee. "What a terrible, terrible day for Wisconsin."

"It occurred to me that I have never been more happy that there are two houses in the legislative branch," Cory Mason, another Democrat, said.

The outcome of the vote was greeted by chants of "it's not over yet" and "we are here to stay" from protesters.

Layoff notices?
The governor has said that if the bill does not pass by Friday, the state will miss a deadline to refinance $165 million of debt and will be forced to start issuing layoff notices next week. However, the deadline may not as strict as he says.

The nonpartisan Legislative Fiscal Bureau said earlier this week that the debt refinancing could be pushed back as late as Tuesday to achieve the savings Walker wants.

Based on a similar refinancing in 2004, about two weeks are needed after the bill becomes law to complete the deal.

That means if the bill is adopted by the middle of next week, the state can still meet a March 16 deadline, the Fiscal Bureau said.

Democratic Sen. Jon Erpenbach said he and his colleagues wouldn't return until Walker compromised.

Massive crowds gather to see the 14 democratic senators that left the state to protest the bill proposed by the Gov. Scott Walker as crowds continued to protest at the Wisconsin State Capitol in Madison on Saturday, March 12.
(Darren Hauck / Reuters)
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Democratic Senator Lena Taylor, right, and civil rights leader Reverend Jesse Jackson Jr. greet the crowd as they and the other Wisconsin State democratic senators that left the state to protest the bill proposed by the Gov. Scott Walker return to massive crowds that continue to protest at the Wisconsin State Capitol on March 12.
(Darren Hauck / Reuters)
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Republican Wisconsin State Legislatures look on as Wisconsin Gov. Scott Walker performs a ceremonial bill signing outside his office at the Wisconsin State Capitol on March 11.
(Justin Sullivan / Getty Images)
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Protesters shout outside the office of Wisconsin Governor Scott Walker as he held a ceremonial bill-signing on March 11. The bill essentially eliminates collective bargaining rights for public union workers except on wage issues
(Scott Olson / Getty Images)
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Protesters hold wooden letters that spell the word "shame" in front of the Wisconsin State Capitol on March 10.
(Justin Sullivan / Getty Images)
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Wisconsin Assembly Speaker Jeff Fitzgerald makes the argument to pass the budget repair bill before the State Assembly in the State Capitol in Madison, Wisconsin, Thursday, March 10.
(Allen Fredrickson / Reuters)
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Spectators in the gallery of the Wisconsin assembly chambers chant "shame" in protest after the House voted to pass the state's controversial budget bill in the Wisconsin assembly chamber on Thursday in Madison.
(Justin Sullivan / Getty Images)
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Wisconsin State Rep. Brett Hulsey (D-WI) flashes the peace sign after the House voted to pass the state's controversial budget bill in the Wisconsin assembly chamber on Thursday in Madison.
(Justin Sullivan / Getty Images)
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The statue "Forward" displays a new sign at the State Capitol in Madison on Thursday, the day after the Senate passed the governor's controversial budget repair bill.
(Steve Apps / AP)
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Erving Smith, of Madison, Wis., shouts at law enforcement personnel after he was slightly injured while being carried out of the Assembly Room lobby in Madison on Thursday, March 10.
(John Hart / Wisconsin State Journal via AP)
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Protesters get kicked out by police from the Wisconsin state assembly chamber as they try to block access to the chambers in Madison on March 10.
(Carlos Javier Ortiz / EPA)
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Wisconsin Rep. Cory Mason, center, talks to protesters in the rotunda of the state Capitol in Madison, Wis., on Wednesday, March 9, after demonstrators retook the Capitol building.
(Andy Manis / AP)
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Assembly Minority Leader Peter Barca, D-Kensoha, center, calls an impromptu news conference March 9 after Republicans in the Wisconsin Senate voted to strip nearly all collective bargaining rights from public workers after discovering a way to bypass the chamber's missing Democrats.
(Andy Manis / AP)
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Tears roll down the face of Liz Sanger of Madison, Wis., after the state Senate passed the budget repair bill following a meeting of a state Legislature conference committee at the state Capitol in Madison, Wis., March 9.
(Michael P. King / AP)
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Wisc. Sen. Robert Cowles, R-Green Bay, is escorted out of the state Capitol in Madison, March 9, after Republicans in the Senate voted to strip nearly all collective bargaining rights from public workers after discovering a way to bypass the chamber's missing Democrats.
(Andy Manis / AP)
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Opponents of Wisconsin Gov. Scott Walker's budget repair bill deride legislators as they leave the senate parlor at the Wisconsin State Capitol Building where the Senate voted to move forward on an amended version of the controversial bill Wednesday.
(John Hart / AP)
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After a protester outside throws a snowball hitting a window at the state Capitol, State Rep. Amy Sue Vruwink, D-Milladore, implores demonstrators to remain peaceful during a press conference of Democratic state Assembly members, March 9.
(Michael P. King / AP)
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Helmut Kenies of the Wisconsin Historical Society sifts through hundreds of signs that were removed from the Wisconsin State Capitol on Tuesday, March 8 in Madison. Posters that were left behind by demostrators that occupied the State Capitol were collected and are being made available for people to claim them until this Friday. Select posters that are not claimed will be acquired by the Historical Society.
(Justin Sullivan / Getty Images)
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Filmmaker Michael Moore speaks to a crowd during a march and rally at the Wisconsin State Capitol on Saturday, March 5 in Madison. Thousands of demonstrators are staging a protest at the Capitol against Governor Scott Walker's attempt to push through a bill that would restrict collective bargaining for most government workers in the state.
(Justin Sullivan / Getty Images)
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Union members protest inside the Wisconsin Capitol on Friday, March 4, in Madison. Some demonstrators returned to the Capitol hours after they were forced to vacate the building after occupying it for more than two weeks. They are protesting Gov. Scott Walker's attempt to push through a bill that would restrict collective bargaining for most government workers in the state.
(Justin Sullivan / Getty Images)
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Wisconsin Minority Leader Peter Barca, D-Kensoha, celebrates with other lawmakers and protesters March 3 outside of the state Capitol in Madison after a judge ordered the Department of Administration to open the Capitol to normal business hours.
(Andy Manis / AP)
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A police officer blocks an entrance of the Wisconsin State Capitol on Thursday. A Wisconsin judge ordered all of the pro-union protesters to leave the Capitol after they had camped out inside the building for two weeks. The judge also ruled that the state had violated the public's free speech and assembly rights by restricting access to the building.
(Justin Sullivan / Getty Images)
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Protesters celebrate as they walk outside of the state Capitol after a judge ordered the Department of Administration to open the Capitol to normal business hours.
(Andy Manis / AP)
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Protesters wake-up outside of the state Capitol, Thursday in Madison after sleeping the night. Opponents to the governor's bill to eliminate collective bargaining rights for many state workers are in their 16th day of protests. The Wisconsin Department of Administration officials shut the doors to many protesters and some chose to sleep outside.
(Andy Manis / AP)
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Wisconsin State representative Fred Clark. left, meets with constituents at his desk outside the capitol building on March 2. Clark and several other Democrat members of the assembly moved their offices outside the building because of the difficulties the public was having entering the building which has been essentially locked down to prevent protestors from spending the night inside.
(Scott Olson / Getty Images)
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Demonstrators protest in a hallway below the assembly chamber where Wisconsin Governor Scott Walker was delivering his budget address to a joint session of the legislature at the capitol on March 1.
(Scott Olson / Getty Images)
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Union Iron Worker Randy Bryce of Milwaukee shows police a court order to open the doors of the state Capitol in Madison, Wis., Tuesday, March 1. It was the 14th day of protests against the governor's bill to eliminate collective bargaining rights for many state workers.
(Andy Manis / AP)
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Democrats refuse to stand as Gov. Scott Walker arrives to deliver his budget address to a joint session of the Legislature, March 1 in Madison.
(Scott Olson / Getty Images)
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Opponents to the governor's bill to eliminate collective bargaining rights for many state workers protest outside of the State Capitol on Feb. 26.
(Andy Manis / AP)
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Rally supporters hang an American flag from fourth floor windows of the State Capitol as thousands of opponents of Governor Scott Walker's budget repair bill gather for ongoing protests inside and outside the State Capitol on Feb. 26.
(John Hart / Wisconsin State Journal via AP)
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Protesters gather in the rotunda of the Wisconsin Capitol in Madison the morning of Friday, Feb. 25, after the Assembly passed a bill ending most state worker collective bargaining rights.
(Carlos Javier Ortiz / EPA)
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Protesters who identified themselves as Kenosha city and county workers hold signs as Wisconsin Gov. Scott Walker's plane flies away after his news conference about his budget repair bill at the Kenosha Airport in Kenosha, Wis., on Friday, Feb. 25.
(Mark Hertzberg / AP)
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Messages left by supporters protesting in the State Capitol are stuck on the office entrance of Wisconsin State Assemblyman Brett Hulsey on Feb. 25.
(Scott Olson / Getty Images)
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Ryan Eykholt of Madison, Wis., plays "This Land Is Your Land" during a protest at the state Capitol in Madison on Friday, Feb. 25, over the governor's proposed budget measures.
(Andy Manis / AP)
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Standing beside fellow Assembly Democrats, State Rep. Christine Sinicki approaches the front of the chamber in outrage as their Republican counterparts cut off debate and vote on the budget repair bill in session at the state Capitol in Madison, Wis., early Friday morning, Feb. 25.
(Michael P. King / Wisconsin State Journal via AP)
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Protester Bridgette O'Brien of Elroy, Wis., does a morning routine of yoga at the state Capitol in Madison, Wis., on Friday, Feb. 25 before another day of protesting.
(Andy Manis / AP)
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Escorted by law enforcement officers, Assembly Republicans exit the state Capitol after cutting off debate and rapidly voting to pass a controversial budget repair bill in the state Assembly in Madison, Wis., on Friday, Feb. 25.
(Michael P. King / AP)
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Assembly Democrats wave to protesters, thanking them after Republicans cut off debate and rapidly voted to pass a controversial budget repair bill in the state Assembly at the state Capitol in Madison, Wis., early Friday, Feb. 25.
(Michael P. King / Wisconsin State Journal via AP)
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Wisconsin Reps. Peter Barca, D-Kenosha, left, and Donna Seidel, D-Wausau, walk to the governor's office at the state Capitol in Madison, Wis., on Thursday, Feb. 24. Opponents of the governor's bill to eliminate collective bargaining rights for many state workers were in their 10th day of protests. Gov. Scott Walker was trying to get at least one Democratic senator back to the Capitol to vote on the bill.
(Andy Manis / AP)
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Wisconsin Democratic state Sens. Tim Cullen, left, and Robert Jauch leave a home on Thursday, Feb. 24, in Woodstock, Ill. The senators have been in Illinois after leaving Wisconsin to try to stop a vote on bill that would take away public workers' collective bargaining rights.
(Lauren M. Anderson / AP)
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Opponents of the governor's bill to eliminate collective bargaining rights for many state workers sleep on the floor of the rotunda at the state Capitol on Feb. 24.
(Andy Manis / AP)
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Wisconsin state representatives start to fade as they listen to arguments on one of the expected 200 amendments to the governor's budget bill early Feb. 24.
(Scott Olson / Getty Images)
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A union advocate, left, and a Tea Party supporter argue in Madison, Wis. on Feb. 19, on the grounds of State Capitol over the governor's proposed budget bill.
(Andy Manis / AP)
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About 30 members of the AFSCME, the American Federation of State, County and Municipal Employees, protest State Rep. Robin Vos, R-Rochester on Feb. 19.
(Scott Anderson / AP)
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Protesters gather outside the state Capitol in Madison, Wis. on Feb. 19. A few dozen police officers stood between supporters of Republican Gov. Scott Walker on the muddy east lawn of the Capitol and the much larger group of pro-labor demonstrators who surrounded them.
(Andy Manis / AP)
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Protestors take a moment to rest inside a bus shelter as crowds continue to gather at the State Capitol grounds, while members of the Wisconsin state government discuss the proposed bill by Gov. Scott Walker in Madison on Feb. 19.
(Darren Hauck / Reuters)
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Democratic Wisconsin Assembly members cheer on the crowd on the fourth day of large scale protests outside of the State Capitol in Madison on Feb. 18.
(Andy Manis / AP)
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Teacher Nicole North Hester, right, cries and applauds as union iron workers pass by during the fourth day of large demonstrations at the State Capitol on Feb. 18.
(Andy Manis / AP)
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Two protesters put up a sign at the State Capitol on Feb. 17, that reads "Run Dems Run" in support of 14 state Senators that have left the state in opposition the bill to eliminate collective bargaining rights for many state workers.
(Andy Manis / AP)
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